July corn futures at the Chicago Board of Trade on Thursday morning hit a new all-time record high of $7.93 a bushel, surpassing the previous high of $7.88 3/4, scored on April 11. Prices did then back off the daily high and were trading near mid-range as of this writing. July futures prices have tacked on around 50 cents a bushel from this week's low of $7.29 1/4. Corn market bulls have gained fresh upside near-term technical momentum this week and are now looking for more on the upside in the near term.
The next upside price objective for the powerful corn market bulls is producing a close above major psychological resistance at $8.00 a bushel. Such would provide the bulls with additional power to suggest a fresh leg up in prices in the near term. If the Corn Belt weather patterns work in the corn bulls' favor during the critical corn pollination period that occurs in late-June/early-July, (meaning hot, dry and windy weather conditions such as those experienced in the Corn Belt earlier this week) then upside price potential in the corn futures market would be greatly enhanced.
Given the already extremely bullish and very tight supply and demand balance sheet for corn at present, any significant weather problems in the U.S. Corn Belt this summer would likely produce explosive upside price action. The corn market bulls would see their enthusiasm significantly dented if July futures prices dropped back and closed below strong chart support at this week's low of $7.29 1/4. Such would also be an early technical clue that market has put in a major price top. Near-term technical resistance for July corn futures is now located at the April high of $7.88 3/4, at Thursday's all-time high of $7.93 and then at $8.00. Support is seen at $7.70, at Thursday's low of $7.59 1/2, at $7.55 and then at $7.50. Stay tuned!
Jim Wyckoff
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